Otter Tail Corporation (OTTR)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 301,662 | 294,191 | 284,184 | 176,769 | 95,851 |
| Total stockholders’ equity | US$ in thousands | 1,668,500 | 1,443,010 | 1,217,320 | 990,777 | 870,966 |
| ROE | 18.08% | 20.39% | 23.35% | 17.84% | 11.01% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $301,662K ÷ $1,668,500K
= 18.08%
Otter Tail Corporation's Return on Equity (ROE) has shown a positive trend over the years, starting at 11.01% on December 31, 2020, and increasing to 17.84% by December 31, 2021, further rising to 23.35% by December 31, 2022. However, there was a slight decrease to 20.39% by December 31, 2023, and a further decline to 18.08% by December 31, 2024.
The company's ROE indicates how effectively it is utilizing equity to generate profits. The consistent increase in ROE from 2020 to 2022 suggests the company was efficiently utilizing its shareholders' equity to generate returns. However, the decrease seen in 2023 and 2024 may warrant further investigation into what factors contributed to these declines and whether they are isolated or part of a longer-term trend. Overall, Otter Tail Corporation has shown strong ROE performance, but monitoring future trends will be essential to ensure sustainable profitability.
Peer comparison
Dec 31, 2024